US to delist all Chinese firms that fail accounting standards by 2022: Official

US Treasury Secretary Steven Mnuchin, on August 10, said that all Chinese firms which do not comply with the accounting standards of the US would be delisted from stock exchanges as the end of 2021. Scrutiny over Chinese firms operating in America has increased in recent times with Trump administration accusing them of stealing private information.

Read: Trump Administration Considering Proposal To Crackdown On Chinese Companies: Reports

Last week, Mnuchin had recommended the delisting move to US securities and exchange commission(SEC) ensuring that Chinese firms are held to the same standards as Americans, which were accepted. Speaking at a White House briefing recently, he confirmed that SEC was expected to adopt the recommendations .”As of the end of next year ... they all have to comply with the same exact accounting, or they will be delisted on the exchanges," he added.

Subjected to audit

As per an American media outlet, all the Chinese companies listed on American stock exchanges are required either to be subjected to audit by US regulators or be delisted. In order to comply with the requirements, Chinese auditors are needed to share their work papers with the Public Company Accounting Oversight Board, a specialized audit regulator overseen by the US government.

Read: China Admits India's Ban On 59 Apps 'severely Damaged Interests' Of Chinese Companies

Trump administration has been quite vocal about its opposition to the Chinese companies, especially in the times when US-Chinese tensions have escalated. Meanwhile, the US Senate on August 6 unanimously passed a bill banning the use of Chinese-owned video application TikTok on government devices. The bill will now go to President Donald Trump to be signed into law. While taking to Twitter, Senator Josh Hawley informed about the decision and thanked Senator Rick Scott for his support.  

In May, the US Senate had passed a bill that could delist some major Chinese firms from selling shares in American stock exchanges. As per the new bill would require oversees firms to follow US standards for audits and other financial regulations. The planned legislation would also require publically traded companies to reveal if they are owned or controlled by a foreign government. 

Read: US Treasury Secretary Steve Mnuchin Confirms TikTok Under National Security Review

Read: US Senate Passes Bill That Could Block Chinese Firms From Selling Shares